Buying and selling within 6 months

by Readers Question

19:41 PM, 2nd October 2014
About 4 years ago

Buying and selling within 6 months

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Buying and selling within 6 months

I am about to purchase a house for cash and intend to sell it within 6 months. I have a buyer lined up but she needs the renovation works to be done first so that she can access a 85% mortgage. I am hoping to get the work done within a month but am concerned that she will have a problem obtaining a residential mortgage on the house as I will have owned it for less than 6 months. Buying and selling within 6 months

I have also agreed to buy her existing house for the same price as she is paying me for this new one. I will get a BTL mortgage on that and then rent it. Any advice would be helpful as to which lenders will do a residential mortgage on a house owned for less than 6 months.

Thanks

Mal White



Comments

Mark Alexander

19:46 PM, 2nd October 2014
About 4 years ago

Hi Mal

Are you buying the first property at arms length via an estate agent? If not I think you will struggle to convince lenders as the transactions look rather too incestuous and they are all still reeling from the pre-credit crunch back to back lending frauds.

Why not rent it for 6 months to your buyer before you complete a sale? That way you will only pay CGT on the profit as opposed to potentially higher tax rates based on income. Also you will be able to utilise your annual CGT allowance.

Please check this with a professional tax adviser, I'm just thinking out load and there may be reasons I've not considered as to why this might not work.
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Bridget Price

8:31 AM, 3rd October 2014
About 4 years ago

Yes am buying the first house through an estate agent. I would prefer to sell quicker than 6 months but looks like it may not be possible.

Howard Reuben CeMap CeRER

10:54 AM, 3rd October 2014
About 4 years ago

If you;re talking about residential mortgage lenders (versus BTL mortgage lenders) then the 6 month 'rule' does not usually apply anyway. The 6 months issue is not actually a rule but an internal policy that some lenders consider they want as part of their criteria. It mainly affects BTL's, and usually does not affect resi mortgages.

Your purchaser needs to work with a professional mortgage broker who can then not only secure the right lender / product but also will check her creditworthiness and status under the new MMR regime.

This fella seems alright 🙂 > http://www.property118.com/member/?id=314


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